UN POVERTY SUMMIT WILL FAIL WITHOUT NEW PLAN, SAYS THINK TANK REPORT

New Economics Foundation launches challenge to Finance for Development 

The world leaders gathering in Mexico next week need to radically rethink current plans for financing development, says a New Economics Foundation report, "Chasing Shadows: Re-Imagining Finance for Development" to be released this Thursday March 14th. The debate around aid levels and measuring the effectiveness of aid is a red herring. Reassessment of international economic frameworks will be needed to achieve the international community's human development goals.

Chasing Shadows takes a look at the issues raised by the UN Finance for Development initiative, and challenges the international community to take the real steps necessary to achieve their stated goals. The report outlines key steps required to deliver on the Western leaders' promises on global security and sustainable development.

The report is published days in advance of the Finance for Development summit in Monterrey from the 18th to the 22nd March. 

• Full report: Chasing Shadows (PDF)

Chasing Shadows - key facts and figures

• Meeting the Millennium Development Goals in the HIPC countries alone will require total debt cancellation plus $48 billion dollars aid. Debt service payments in the 39 poorest countries outstripped their spending on education almost twofold in 1999. 
  
• A minimum $100 billion is needed each year to secure the basic human rights of the world's disillusioned and restive poor; a fraction of the $800 billion already spent annually on arms and warfare
  
• The UN Finance for Development initiative focuses on Foreign Direct investment, yet since 1960 the countries that have seen the greatest increases in standard of living have been those investing through domestic savings, not those with the most inward investment
  
• Implement effective capital and exchange controls - take a cue from countries like China and Malaysia that have best weathered recent economic crises. In Argentina, capital flight is estimated at $130 billion, equivalent to total public debt
  
• UNICEF recently estimated that effective care for young children would cost an additional $70 billion per year -equivalent to the amount the OECD spends on subsidising fossil fuels
  
• 20 to 30 million people are at risk of being displaced by rising sea levels in Bangladesh, the Philippines, Thailand and Egypt. The Maldives are at risk of totally disappearing. People are already attempting to evacuate the Pacific island state of Tuvalu.

Notes for editors

1. Ann Pettifor, head of the Jubilee Research Program at New Economics Foundation, will be attending the Forum in Monterrey and can be reached via Jessica Bridges - Palmer on 07789 515 520.

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